Social credit is a distributive philosophy of political economy developed in the 1920s and 1930s by C. H. Douglas. Douglas attributed economic downturns to discrepancies between the cost of goods and the compensation of the workers who made them. To combat what he saw as a chronic deficiency of purchasing power in the economy, Douglas prescribed government intervention in the form of the issuance of debt-free money directly to consumers or producers (if they sold their product below cost to consumers) in order to combat such discrepancy.

Social Credit is an economic theory by C.H. Douglas that aims to fix a fundamental problem: the total cost of producing goods and services is always greater than the money people have to buy them. To solve this, Social Credit proposes a National Dividend, a regular payment given to all citizens to boost their purchasing power, and a Compensated Price Mechanism, which reduces prices so consumers can afford more while producers still make a profit. The idea is to ensure that the economy works for everyone by closing the gap between what people earn and what they need to spend, without relying on debt or heavy government control.
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